Abstract
The social and economic development of a nation is dependent on a reliable supply of materials and energy and on the efficient utilization of these resources. Decision making in industry and the formulation of government policies encompasses the technical, economic, and environmental factors involved in the flow of materials through production processes and their utilization in the overall economy. The complex interrelationships among these areas can only be addressed through analysis. Among the analytical techniques that may be applied to analysis of the materials system, forecasting of supply and demand, and estimates of substitution among alternative materials are simulation, using either econometrics or a more descriptive model, and optimization. This paper addresses the role of optimization and the limitations of this technique. To consider the role of optimization in the materials system, it is necessary to address the structure of the materials system including alternative resources, conversion technology, and end uses. The reference materials system (RMS) is employed for this purpose and provides an integrating framework for materials data and analysis. The structure of the RMS is a network description of the flow of renewable and nonrenewable materials from resource extraction through the refinement, production, and transportation processes to the use, maintenance, and recycling operations. The inclusion of the functional end use sectors is required for substitution analysis.
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